About China's Interest Rate Market Interest Rate And Exchange Rate Relationships In The Study

Asian financial crisis that broke out in 1997 indicates , the financial crisis had great harmrulness , will cause the turbulence of one country and even a regionaleconomy and even collapse. Our country has made the achievement arousing world attention through the reform and opening-up of more than 20 years, the social environment is being improved constantly, the development with continuously steady economy. With the enlargement opening to the outside world of our country, as our country joins WTO, foreign economic organization and other countries require the voice that our country deepens in the financial domain reform to improve day by day. Our country embodies in a great deal of respects , such as policy , system ,etc. to the reform of the financial field, among them an important one is interest rate marketization, and the interest rate is regarded as one of the financial policy tools, its influence is extensive and far-reaching. During the market-based reform of interest rate, conducting concerning the important influence factor that is a policy tool result of influencing interest rate , exchange rate etc. of interest rate and exchange rate.Our country outshines others when the international economy is dispirited, GDP has grown at top speed for several years in succession, even if not influenced by the fact that greatly either under the condition that SARS epidemic situation has happened in 2003, this owes much to enthusiasm financial policy for several years in succession. But the interest rate of our country is lowered again and again, the deficit of the country and scale of national debt soar constantly , the exchange rate of RMB faces the great appreciation pressure too. At this moment, research interest rate, the change law of the exchange rate and relation question each other become us in the reform in banking system, especially one of the key problems in the market-based reform of interest rate.This article through the analysis interest rate to the exchange rate the influence mechanism, seeks the Chinese interest rate - exchange rate conduction mechanism the constitution and the function. This first needs to carry on the basic theory summary and the analysis. Introduces on international about the exchange rate and the interest rate relations basic theory, including purchasing, interest rate fair price, international payment balance, exchange rate currency analysis, exchange rate over modulation model, Mondale - Fleming model and so on. Meanwhile usable carries on the analysis to each kind of theory in China.On this basis, this text China interest rate at present- conduction mechanism of the exchange rate is it analyse and seek to go on. The author is on the basis of the thing that interest rate system and interest rate tendency in recent years to China are analysed, make every effort to analyse China in the market-based process of reform of interest rate, the interest rate formed gradually- the conduction mechanism of the exchange rate, utilize western developed country interest rate par model and Mondale that economist use often at the same time - Fleming model actual conditions in China prove that analyse. However, these model types are set up on the perfect financial market system foundation abroad, though there is great directive significance to our country , can't totally imitate , is regarded as and analysed the interest rate of our country - the model of the conduction mechanism of the exchange rate directly. So this text analyses , strive to make the analysis of this text close to China's actual conditions based on policy goal of Central Bank.Finally, this text studied accounts of capital of our country at present under terms of opening progressively , China's interest rate policy is matched with the coordination of the exchange rate policy.While the capital account opens progressively , China must face the threat of the international capital flowing into in a large amount and domestic capital flux , the outside is difficult to avoid to assault , therefore, the open course should follow in order and advance step by step, distinguish primary and secondary to unlock progressively successively, strive to reduce the open impact to domestic financial economy of course to the minimum. This needs to take a series of reform measures, optimize market system and environment, realize the benign mechanism conducted effectively between interest rate and exchange rate, coordinate the interest rate policy and exchange rate policy further, take precautions against financial risks , ensure the financial security better.